Tesla may be about to make a huge push into China

Tesla is close to finalizing an agreement with the city of Shanghai that would allow it to build manufacturing facilities in the area as early as this week, Bloomberg first reported. Details are still being finalized, but the deal would allow Tesla to build plants in Shanghai's Lingang development zone.

A Tesla spokesperson did not immediately return Business Insider's request for comment.

Chinese internet giant Tencent acquired a 5% stake in Tesla in March, highlighting a vote of confidence in Tesla's position in the world's most populous country. Tencent will serve as a passive "advisor" to the company going forward.

Tesla has ambitious plans to boost production from 83,000 vehicles per year to 500,000 by 2018. In addition to China, Tesla CEO Elon Musk is also working with the government of India to relax import penalties until it can build a local factory.